Organization of India’s Economy
What is economics ?
”Economics is the discipline from which governments or any organizations or companies [private as well as public] balances or use scare resources sustainably to produce beneficiary and valuable [prioritized] commodities to gratify different needs of their life ” .
On earth the resources will always be limited and their demands will always increase by time due to increase in the population rate especially India which is second highest record of population after China .so human have to first made their choices and made list of prioritized goods and services ,so that resources must use more efficiently..as time changes ,people choices also change ;so will the priorities. so economy is evolving discipline and very dynamic . often highlighted as depressing and poor science [because we cant predict future of economics. it is also preferred as dismal failed science example covid-19 situation nd 2008 economic crisis ].yet it is invaluable in nature because maximum human activities involves economic activities in their livelihood even going temples ang giving alms .
economics tell us about all the economic activities happening around us like going to market through car , purchasing household items , charity , etc which involves money ,profit , employment , loss, livelihood , occupation , etc .it is the study of goods and services produced ,distributed and consumed in the territory .it mainly depends upon the supply and demand .
- SCARE RESOURCES DIRECTLY PROORTIONAL TO UNLIMITED NEED ALWAYS
Difference between Economics and Economy
|1.It is the discipline which study the economic behavior , theoretical concept and help decision making of human beings
2.it is theory ad principles of market , occupation etc
3 It is input
2. it is practical or real picture of it [application of economics in the region].example Indian economy , China economy .
3. it is output [economics impact]
- After great depression economics divided into macro and micro economics when economic hub countries like Europe and America suffer unemployment ,jobless , less GDP .before 1930 It was free market economy [ ] governments does not administer or intervention the supply and demand of goods .
- John Keynes is the father of macroeconomics .
- Difference between macroeconomics and microeconomics –
Different Sectors of economy
the countries economic activities are of different types and so for maximum output economy of region is divided into many sectors weather you are in Capitalistic or in socialist economy .these sectors are universal. there are mainly three sectors of economy ,but quaternary and quinary sectors are also said to be 4th and 5th sectors respectively and are mainly considered in the tertiary sector.
- it is primary mode of economic interaction .here direct use primary or natural resources are used like raw materials
- agriculture sector ,fuel sector [mining] ,metals ,forestry ,fishing ARE EXAMPLE
- these are called blue or red collar jobs .
2 Secondary sector
- primary sector provide secondary sector [INDUSTRIAL SECTOR ] raw materials or natural resources for production or manufacturing.
- example -food processing units ,Refineries , manufacturing or productions units included into this sector. wheat floor from wheat ,bread from flour, biscuits from flour , petrol from crude oil ,ornaments from gold.so here final goods are prepared from raw materials which are produced from primary sector .
- these are called blue collar jobs
- This sector consist of economic activities where many types of services are given or produced .
- here products are transported or reached to the households .
- this sector is also known as SERVICE SECTOR
- these are called white collar jobs .Transportation , Communication include in this .
this is divided into two sub parts
a] Quaternary sector
- high skilled jobs of tertiary sector include in the Quaternary sector or Knowledge sector .
- here delivery of knowledge happen
- example banking , IT sector , Education , Knowledge sector .
- these are called white collar jobs
b] Quinary sector
- highly skilled jobs included in services sector are called Quinary Sector jobs [gold collar jobs]
- they have high security jobs with more income .
- example research and development sector , CEO , Scientists ,Bureaucracy
- they are gold collar jobs
Types of economies
According to W.W.Rostow economy of countries grow in linear stages from primary to secondary then to tertiary .
But south Asian countries like Philippines ,Thailand , Vietnam , Indonesia are exceptions for it .India is also exception because they did not have secondary sector country
1 agrarian Economy
- if share of country GDP is more then 50 % in agriculture then will be the agrarian economy .India is first such example of this economy
- At the time of independence India was Primary sector economy .but now it is service economy but 50 % of India population still depend upon agriculture for their livelihood .India never been the secondary sector economy.
- for example in India now includes 17 % of agriculture . so it is not primary sector or agrarian economy
- it is contributing only 31 % of total GDP output .so India is not industrial economy
- higher the contribution in this sector higher will be the industrialization .
- western countries were first which went for this which helps them to earn more and developing early .that is why these countries are called developed countries [later saturation occur]
- a country where more then 50 of produced is come from services sector their economy is called services economy
- it contribute 54 % of the GDP in Inia .so India is services sector economy
- India growth is maximum from services sector .